Vedanta Aluminium Metal declared its first interim dividend of ₹8 per equity share for the financial year 2026-27, amounting to approximately ₹3,128.55 crore. The Board of Directors set August 5, 2026, as the record date for determining entitlements. This payout follows a strong start to FY27, where consolidated EBITDA surged to ₹10,499 crore in Q1FY27, up from ₹4,479 crore in the corresponding period last year.

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following a board meeting held on July 30, 2026. Alongside the dividend approval, the Board formulated and adopted two new employee benefit schemes: the Vedanta Aluminium Metal Limited – Employee Stock Option Plan 2026 (VAML ESOP 2026) and the Employee Share Purchase Plan 2026 (VAML ESPP 2026). These initiatives aim to align employee interests with long-term value creation.

Dividend and Shareholder Details

The interim dividend is payable on equity shares with a face value of ₹1 each. The payment will be made within the timelines prescribed by law following the record date. This distribution reflects the company's robust cash generation capabilities post-demerger from Vedanta Limited, which became effective on May 1, 2026.

Employee Stock Benefit Schemes

The Board approved the VAML ESOP 2026 and VAML ESPP 2026, subject to shareholder approval. Together, these schemes cover up to 5% of the total paid-up share capital. The ESOP pool comprises up to 16,62,04,184 shares (4.25% of paid-up capital), while the ESPP pool includes up to 2,93,30,150 shares (0.75% of paid-up capital).

Both schemes will be implemented through the Vedanta Aluminium Metal Limited ESOS Trust via secondary acquisition from the open market. The Trust's holdings under all outstanding schemes must not exceed 5% of the paid-up equity share capital at any time. Eligible employees include staff from the company, its holding company, and subsidiaries, excluding promoters, promoter groups, independent directors, and persons holding more than 10% equity.

Scheme Terms

Under the VAML ESOP 2026, options vest between one and five years from the grant date, based on performance parameters set by the Nomination & Remuneration Committee. The exercise price is proposed at the face value of ₹1 per share. Options may be exercised within eight months of vesting. For the VAML ESPP 2026, the purchase price is nil or as determined by the committee, with a lock-in period of one year from the date of transfer.

Financial Performance Context

The dividend declaration coincides with reported consolidated revenue from operations of ₹21,393 crore for Q1FY27, an increase from ₹14,654 crore in Q1FY26. The following table summarises the key financial metrics for the period:

Vedanta Limited subsidiary Hindustan Zinc Limited (HZL) reported a consolidated net profit of ₹5,469 crore for the first quarter ended June 30, 2026, marking a 145% increase from ₹2,234 crore in the corresponding period last year. The surge was primarily driven by robust revenues from its core Zinc, Lead, and Silver segment, which contributed ₹12,985 crore, alongside an expansion in operating margins to 52% from 38% in Q1FY26. Total revenue from operations stood at ₹13,033 crore, up significantly from ₹7,591 crore in Q1FY25.

The Board of Directors, at a meeting held on July 24, 2026, approved the unaudited standalone and consolidated financial results for the quarter. The results were reviewed by the statutory auditors, M/s MSKA & Associates LLP, who issued an unmodified limited review report in compliance with Regulation 33 and Regulation 52 of the SEBI Listing Regulations. Additionally, the Board appointed Mr. Amarendu Prakash as CEO and Whole-time Director, effective August 1, 2026, subject to shareholder approval.

Financial Performance

HZL’s financial health showed marked improvement across key metrics. Standalone net profit reached ₹5,425 crore, compared to ₹2,204 crore in Q1FY25. The company’s debt-equity ratio improved to 0.31 times from 1.19 times in the previous year, reflecting a stronger balance sheet. Earnings per share (basic) were reported at ₹12.94, up from ₹5.29 in the same quarter last year.

*EBITDA calculated as Profit Before Tax + Interest + Tax Expense + Depreciation & Amortization.

Segment-wise Insights

The Zinc, Lead, and Silver segment remained the primary revenue driver, contributing ₹12,985 crore against total revenue of ₹13,033 crore. Silver revenue alone surged to ₹3,839 crore from ₹1,426 crore in Q1FY25. The Wind Energy segment contributed ₹48 crore. Segment result for Zinc, Lead, and Silver was ₹7,173 crore, highlighting strong operational efficiency. All material expenses were attributed to this core segment.

What the Numbers Show

The dramatic improvement in profitability is underpinned by both volume and price dynamics in the metals market, evidenced by the 71.7% jump in revenue. Notably, the operating margin expansion from 38% to 52% indicates significant operational leverage, as costs such as mining royalty (₹1,536 crore) and power/fuel (₹699 crore) did not rise proportionally to revenue. The sharp decline in the debt-equity ratio to 0.31 times from 1.19 times suggests aggressive deleveraging or capital restructuring over the past year, enhancing financial stability.

Regulatory and Governance Updates

The filing disclosed ongoing regulatory interactions. SEBI communicated observations on related party transactions during the quarter, pertaining to approvals and disclosures. Management stated that corrective measures were taken and presented to the Audit & Risk Management Committee, which expressed satisfaction with the actions. No financial penalties or sanctions were imposed. Additionally, the Enforcement Directorate conducted search operations at HZL premises between June 1 and June 3, 2026, under FEMA 1999. The company cooperated fully and has not received further communication from the ED.

Regarding prior short-seller allegations, management maintained that the claims were baseless and that all transactions had appropriate commercial substance and regulatory approvals. No adjustments were required in the financial results based on these matters. An interim dividend of ₹11 per equity share, amounting to ₹4,648 crore, had been declared earlier with a record date of April 30, 2026.